Retrospective service tax exemption on road repair services defeated the demand and justified waiver of pre-deposit.

Road repair services were treated as exempt from service tax with retrospective effect under Section 143 of the Finance Act, 2012, so the demand could not be sustained. On that basis, the pre-deposit requirement was waived and recovery was stayed during the pendency of the appeal. The impugned order was set aside and relief was granted to the assessee.

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Issues: Whether the service tax demand on road repair services survived in view of the retrospective exemption under Section 143 of the Finance Act, 2012.

Analysis: The service of repairing roads was held to stand exempted from service tax with retrospective effect by virtue of Section 143 of the Finance Act, 2012. In light of the retrospective amendment, the demand could not be sustained, and the requirement of pre-deposit was waived with recovery stayed during the pendency of the appeal.

Conclusion: The impugned order was set aside and the appeal was allowed in favour of the assessee.

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